Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 426 - HC - Income TaxDisallowing the provisions made towards liability for warranty for goods supplied by the appellant on the ground that it is a contingent liability - Held that:- Assessee requested that the matter may be remanded to the Assessing Officer for fresh consideration so that the Assessee will be able to produce material to substantiate the case. We find that such a plea wholly inadmissible at this juncture, especially when we are called upon to decide the substantial question of law, which has been framed for consideration. Assessee has failed to fulfill the three conditions pointed out by the Hon'ble Supreme Court in Rotork Controls India Private Limited (2009 (5) TMI 16 - SUPREME COURT OF INDIA) and there has been no material placed before the Assessing Officer to establish that the provision in the accounts for the warranty charges was based on any scientific basis or based on the past experience. Thus, the stand taken by the Assessee was wholly non-substantiated and consequently, the Tribunal rightly allowed the appeal filed by the Revenue and restored the findings of the Assessing Officer.
|